Real Estate Street Vendors (Value Propositions)

Hands down, the latest and greatest corporate buzz phrase this year is value proposition.  I'm tired of hearing it, and more tired with the way we're utilizing it.  The way value proposition is typically described is as a list of all the tools, programs, systems that would be available to someone choosing to affiliate, or stay with a company.  Subsequently, I see great emphasis being placed upon the creation and communication of long and detailed laundry lists of every possible such tools, programs, systems, benefits.  Such a recognition of the positive elements of an organization, while important, does not constitute a value proposition!  Here are three reasons why our commonly-held notion of a value proposition is lacking:

1. We ignore half of the proposition.  A value proposition is the sum total of benefits which are promised in return for payment or other value-transfer.  It's often expressed by the formula: Value = Benefit - Cost (including risk).  In short, a value proposition is: What you propose to give in exchange for what you propose to get, or:Value = Give - Get.  A proposal isn't a one way street, and it's the second half - the part about what we expect to receive in exchange for all those tools, systems, support, that real estate company owners ignore.  We seem to think that our commission plan represents our unspoken mutual expectation of the agents' side of the proposition in its totality.  Rarely does a company know, let alone communicate what it expects in return for the extending of all that support, those resources, all that good stuff.  This is where a company's values - lived through its culture come into play.  Do you expect your sales associates to return inquiries promptly?  Do they have to come to your meetings?  Is there a certain amount of real estate they must sell?  Do they actually have to (learn to)  use those fabulous tools?  Can they refer to their favorite outside lender and title company?  No, these expectations - their side of the bargain - are usually left unspoken, because we're afraid to scare them off just when they might be leaning our way.  Without question, the #1 thing most likely to ruin partnerships are unclear and/or unspoken expectations.
2. We use the same value proposition for every agent.  If our basic proposition is "we give you all this support and stuff in exchange for you affiliating (or remaining) with us" we assume that our laundry list addresses the needs of the other.  Yet, we already know that just as every customer's wants and needs are different, so are those of sales associates.  Some do actually want to maximize their incomes, yet others are more interested in belonging to a community.  Some are out to demonstrate their worth to others, while some need to prove it to themselves.  Some want to embrace technology - others ignore it for as long as they can.  Some want significant oversight, while others want to be left alone.  Spouting a list of company attributes, even a really long and impressive list may not be the most compelling proposition to offer!  Sometimes it feels as though all the real estate companies are street vendors hawking their goods in the crowded alley, shouting over each other: "Our apples are biggest and shiniest-buy ours!" when the customer is looking for bananas.   What if, instead of shouting our laundry lists, we asked, listened, and learned what should be on them for each person?  To be truly effective, value propositions must be individually differentiated.
3. Creating and extending a unique value proposition is a strategic  function of leadership and a significant source of competitive advantage.  It's not about making a longer list than the guy in the next booth, or yelling it more loudly!  What can you offer that most specifically and uniquely meets the needs of the agents you seek to attract and retain?  Who are the people (beside "everybody") that you want to attract?  How can you become more attractive?  If I'm right in my belief that sales associates - like customers - are more successfully attracted than pursued, isn't it likely to take a little more strategy and creativity?  Does the longest list win?

Ruminating, compiling, expounding a fully comprehensive list of all the great things that you offer is a valuable and worthy exercise.  Don't mistake it as a value proposition, however.  It's only a starting place, effective only when utilized in a consciously crafted strategy based upon discovering and addressing the individual needs of your prospects. 

Once you've compiled your list, don't stop.  That's the point where Leaders begin.

Lead.